BOI confirms 'debt for equity' swap

Bank of Ireland has announced plans to enforce 'burden-sharing' on its subordinated bondholders in order to help meet the costs of recapitalising the institution.

Under the terms of a "debt for equity" swap announced today, junior bondholders will be offered 10% to 20% of the original value of the bonds in order to help raise the €4.2bn in capital needed to meet targets set by the Central Bank.